11What is the name of your state? California
Hi,
I have registered a corporation in Calicornia, USA ( B ). My friend has a company registered in INDIA ( C ). He is getting some work from company in USA ( A ).
My friend's company ( C ) is subcontracting this work to another company in India ( D ) which is eligible to receive payments in USD as per government of india rules. My Friend's company ( C ) is not eligible to receive paments in USD or when ever he receives payment in any foreign currency in India it gets converted to Indian currency.
Now the subcontracting comapny ( D ) is asking my friend ( C ) to make the payment in USD only as it is eligible to receive foreign currency payment. My friend ( C ) is asking me ( B ) to work as mediator in this case. He is requesting me ( B) to invoice the US based company ( A ) throuhg my corporation in california ( B ) and whatever amount I get from US company ( A) split it between his company ( C ) and subcontracting company ( D) as per the agreement.
Company in USA - A
My Corporation in USA - B
My friends company in india - C
Subcontracting company in India - D
My friend is expecting
B to sign contract with A
B to raise invoice to company A for the work
B to receive the payment
B to split payment send 20 % to company C and 80% to company D
There s no benifit for 'B' in this transactions and 'B' does not expect any benefit I would like to know is there any leagl or tax implications to 'B' in this whole transactions.
Regards,
Umesh
Hi,
I have registered a corporation in Calicornia, USA ( B ). My friend has a company registered in INDIA ( C ). He is getting some work from company in USA ( A ).
My friend's company ( C ) is subcontracting this work to another company in India ( D ) which is eligible to receive payments in USD as per government of india rules. My Friend's company ( C ) is not eligible to receive paments in USD or when ever he receives payment in any foreign currency in India it gets converted to Indian currency.
Now the subcontracting comapny ( D ) is asking my friend ( C ) to make the payment in USD only as it is eligible to receive foreign currency payment. My friend ( C ) is asking me ( B ) to work as mediator in this case. He is requesting me ( B) to invoice the US based company ( A ) throuhg my corporation in california ( B ) and whatever amount I get from US company ( A) split it between his company ( C ) and subcontracting company ( D) as per the agreement.
Company in USA - A
My Corporation in USA - B
My friends company in india - C
Subcontracting company in India - D
My friend is expecting
B to sign contract with A
B to raise invoice to company A for the work
B to receive the payment
B to split payment send 20 % to company C and 80% to company D
There s no benifit for 'B' in this transactions and 'B' does not expect any benefit I would like to know is there any leagl or tax implications to 'B' in this whole transactions.
Regards,
Umesh
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